S&P downgrades ABN Amro, Rabobank

The ratings on the two large Dutch banks were cut by one notch each, to A from A+ for ABN AMRO and to AA- from AA for Rabobank.

Two
other banks, F. van Lanschot Bankiers and SNS REAAL, also were cut by
one notch and S&P lowered the outlook on ING Bank, ING Group and
Achmea Hypotheekbank to negative, while keeping the ratings unchanged.

"In
our view, Dutch banks are exposed to increased economic risks as a
result of a potentially more protracted downturn in The Netherlands and
wider eurozone," S&P said.

It added that the prolonged
correction in the Dutch property market and government deficit-cutting
measures would continue to hit the Dutch economy, "although we expect
the overall impact on the banking sector to be moderate."

S&P
was cautious, saying the Dutch economy remains structurally sound and
competitive, and that there is only a low likelihood that banks will
experience a sharp increase in housing-related losses.

However,
it said: "We could see further pressure on our assessment of economic
risk in The Netherlands in the event of a more pronounced correction in
the eurozone."